Publication 135

(11/08)

Consumer Bill of Rights Regarding Tax Preparers

(General Business Law Article 24-C)Taxpayers who use the services of paid tax preparers are entitled to protection from unfair treatment. While most taxpreparers act within the law and treat their clients fairly, there are some that don't.This

Consumer Bill of Rights Regarding Tax Preparers

describes your rights and contains important information abouthow to protect yourself from unfair practices.

Some services offered by tax preparers:

• Preparation of federal and state income tax returns.• Electronic filing

("e-file") – the process of filing your tax returns over the Internet.

• Tax planning

– giving advice on personal or business decisions throughout the year that will affect how much taxyou will owe at the end of the year.

• Tax accounting

– the accounting needed to comply with federal, state, and local tax law and regulations.

• Refund anticipation loan (RAL)

– A RAL is not a "quick refund," "fast refund," or "instant refund." It is ahigh-interest loan offered by a tax preparer to a taxpayer against the taxpayer's anticipated income tax refund. (See

Refund anticipation loans (RALs)

below.)

Before you hire a tax preparer, you have the right to ask:

• Who will prepare your tax return? What are that individual's qualifications?

• Not all paid tax preparers are required to be licensed or are subject to educational requirements underNew York State law.• You should ask the preparer about his or her education, training, and experience with the particular tax servicesthat you require.

• How are fees calculated?

• You have the right to ask your preparer for a written estimate of the total cost of each service offered.

• Will the preparer electronically file (e-file) your tax returns?

• E-file with

direct deposit

is the fastest way to receive your refund.

• Will the preparer help you if you're audited or if the Internal Revenue Service (IRS) or the New York State TaxDepartment bills you for additional tax?

Refund anticipation loans (RALs)

If you file an income tax return and claim a refund, your preparer may offer you a refund anticipation loan (RAL). With aRAL, a lender will immediately lend you the amount of your refund, after deducting amounts for interest and fees. Thelender will receive and keep the full amount of the refund when it is issued.A few things to keep in mind about RALs:• A RAL is not a tax refund but is, in fact, a

high-interest loan.

• If you want your refund as soon as possible, without paying the interest and fees required by a RAL, consider havingthe preparer

e-file

your return and having the refund

deposited

directly

into your bank account or mailed to you.